ARDB’s Green Loan
TARGET CUSTOMER
An individual or legal entity engaged in business activities within the agricultural value chain actors, contributing to rural economic development. These activities must adhere to Environmental and Social safeguards, aligning with the commitment to sustainable development of the national economy.
All target customers must operate local businesses or production and require capital for their business operations.
SCOPE OF LENDING
An eligible green project can be defined as any agricultural value chain actors (from upstream to downstream players) whose business activities focus on environmental impact mitigation, climate change adaptation, and new technology adoption while contributing to rural economic development. The scope covers key aspects of mitigation, adaptation, and cross-cutting areas, along with other co-benefits, including but not limited to the following areas:
| Impact Areas / Contribution Outcomes | |
|---|---|
| Mitigation: | Any agricultural value chain actors whose business model is designed to contribute to reducing GHG emissions or enhancing carbon sinks. This includes using renewable energy sources like solar, wind, hydro, bioenergy, and biogas; improving energy efficiency; adopting low-carbon agriculture techniques; and practicing regenerative agriculture to maintain soil health, etc. |
| Adaptation: | Any agricultural value chain actors whose business model is designed to withstand or reduce vulnerability to the current or expected impacts of climate change like, for example, extreme weather conditions. This can be achieved by, for example, planting crop varieties that are more resilient to drought, using green/net houses in production, improving water storage/ use, enhancing water irrigation systems, etc. |
| Cross-cutting: | Any agricultural value chain actors whose business model addresses both mitigation and adaptation solutions. |
| Co-benefits: | All financed projects are expected to contribute to sustainable development goals (SDGs) by providing one or more of the following environmental, economic, or social co-benefits:
This can be achieved by financing projects aimed at resource efficiency, environmental sustainability, climate-smart approaches, and enhancing the quality and safety of agri-food systems. |
ELIGIBILITY CRITERIA
- Individual/Legal entity,
- Involving in the agricultural value chain,
- Existing business,
- Good credit history,
- Repayment capacity, and
- Securing by collaterals.
DOCUMENTATION REQUIREMENTS
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For individual customers
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For Entity
- National ID, Family Book, or Residence Book (Copy)
- Title Deed as collaterals
- Business registration certificate (Copy) and
- Other required documents, as necessary.
- National ID, Family Book, or Residence Book of representatives (Copy)
- Valid Patent and incorporate Certificate (Copy)
- Articles of Association/Incorporation (Copy)
- Board Resolution which permits representatives to borrow money from the Bank.
GREEN LOAN PRODUCTS
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Working Capital
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Investment Capital
- Loan size : 500 to 100,000 USD
- Interest Rate : 6% to 7.5% p.a
- Loan Term : Up to 12 months
- Loan size : 500 to 200,000 USD
- Interest Rate : 6.5% to 7.5% p.a
- Loan Term : Up to 84 months
PAYMENT METHOD
- The principal repayment is based on cash flow (monthly, quarterly, semesterly, or at the maturity date)
- Interest Payment (monthly)
COLLATERAL
- Must have enough collateral mortgage which recognized by authority, or Certificate of Deposit, etc.
SPECIAL CONDITIONS OF GREEN LOAN
- Flexible repayment based on the cash flow,
- No penalty (partial prepayment, bulk prepayment before maturity date)
- More resilient to climate change,
- From conventional to sustainable business models,
- Contribute to Environmental and Social Impact mitigation, and
- Other benefits.